Posted on 02/15/2020 2:14:37 PM PST by Libloather
WASHINGTON - As part of a forthcoming package of proposed tax cuts, the White House is considering ways to incentivize U.S. households to invest in the stock market, according to four senior administration officials familiar with the discussions.
The proposal, one of many new tax cuts under consideration, would see a portion of household income treated as tax-free for the purposes of investing outside a traditional 401(k). Under one scenario, a household earning up to $200,000 could invest $10,000 tax-free, although officials noted these numbers are fluid.
"Nothing's ruled out," said one senior administration official. "Nothing's been ruled in, either."
**SNIP**
The tax break, if enacted, would represent "a pretty substantial amount of money for people" to have for retirement, according to Stephen Moore, economist at the conservative Heritage Foundation and close confidante of the White House.
"That's the type of thing that would expand ownership," Moore tells CNBC.
(Excerpt) Read more at msn.com ...
Because the stock market is controlled by international banking cartels.
Invest in profitable businesses or real estate instead.
” reverse spending trends and become saving oriented economy.”
I’m for a savings oriented citizenry rather than a savings oriented economy, and I think that’s what you’re talking about, no?
Better idea...
Just increase the amount you can invest in your 401K.
Instead, this new tax free idea will require hundreds of pages of new rules and legal interpretations, hundreds of new auditors, and thousands of private lawyers and financial experts to advise the new investors.
Nah, stop worrying. WEE got this covered.
Ignore The Endless Talk Of Doom, Budget Deficits Really Don’t Matter
Not as a percentage of GDP, which is probably the best way to look at it over time.
We're just a little over 16% compared to 19.75% in 2000.
Hope it would be for more than just stocks. I do apartment syndication’s where we raise money from private investors through 506(b) compliant private offerings.
My portfolio is conservative in its mix, about 5-55% Bonds, mostly short term and through out this entire Coronavirus thing I have done quite well as Bonds being a safety haven have soared.
If the worst happens money from all over will flood into Treasuries because despite the USA trashers when the shtf the almighty dollar is king and the safest place to be.
Great idea!
“This tax cut nonsense needs to stop. We are running huge deficits”
You are in error. Tax cuts make absolute economic sense. Tax cuts enhance revenue due to greater economic growth. The problem is out of control spending. That is what needs to be corrected.
If congress has one dollar of revenue they will spend that and more via borrowed money. Congress is the problem.
One of the reasons will hopefully be to reprogram a lot of people that instead of hating corporations and CEOs they can actually make money also. There’s an awful lot of re-education that needs to happen for this country to survive.
Savings are stagnant. The bank just invests your money, instead of you, and they reap the profits.
Lol, you really think the problem is the government doesn’t have enough of your money?
Re: “The stock market is controlled by international banking cartels.”
Even if true, so what?
Since 1920, the SP 500 has an average return of 7% per year (adjusted for inflation - dividends reinvested).
For long term average investors, the USA stock market was the best and most accessible investment on planet Earth for the last 100 years!
Revenues have gone up since the tax cuts. The problem is spending.
The “penalty” for day trading is that capital gains are taxed at higher income tax rates for assets held for less than 12 months. I suspect most day traders don’t make a heck of a lot of money when all is said and done.
You cherry picked the year.
2000 was when the largest number of Americans cashed out of the dot-com bubble.
Capital gain tax collections hit a record high and have never come close to that since.
So what? Tax cuts are still the right approach. Spending needs to be cut.
IMHO, our non-capitalist class would be better served by making the first $500 of INTEREST earnings “tax-free”.
1. There would be no risk of principal loss due to market fluctuations.
2. There would be less risk of “broker fraud” from stock brokers and other scammers.
3. This would encourage folks to open new “savings accounts” for possible future expenses.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.